New e-sugam notification is issued on 25/01/2011 which comes into effect from 1st of Feb 2011 for quick clearance of goods at the check-posts. the notification is after due consideration of the feedback of the dealers and the Field officers of the department of e-sugam.

Salient features:

1.The list of good s notified for mandatory uploading in the department website :

http://vat.kar.nic.in or vatkar.gov.in at the time of sale has been expanded to 20 goods which are as under:

All taxable goods which are transported for purposes other than as a result of sale are notified for mandatory uploading in the department's website at the time of dispatch. Goods notified for out of state movement are 13 in number

1.All kinds of automobile parts and accessories

2.All kinds of electrical goods including appliances

3.Cement

4.Dry fruits

5.Edible oil including vanaspathi

6.Flooring / Wall tiles of all kinds

7.Glass

8.Granite/Marbles

9.Gutka

10.Iron and steel

11.Machinery of all kinds

12.Plywood , veneer

13.Timer including Eucalyptus and casurina

The validity period of the e-SUGAM once uploaded is prescribed depending on the distance between the place of origin of the goods and the destination of goods which as under:

1)If the distance from the origin of the goods to the destination is less than 100kms - Validity period is 3 days from the day of upload

2.If the distance from the origin of the goods to the destination is between 100kms to 500 kms - Validity period is 5 days from the day of upload.

3..If the distance from the origin of the goods to the destination is above 500 kms - Validity period is 7 days from the day of upload.

I. Steps:

1. Login to the Commercial Tax Department web-site http://vat.kar.nic.in or http://vatkar.gov.in or http://164.100.80.20/vat505 using the username and password.

2. In case of the first time login, the system will show some informative screens and ask user to enter his choice of username and password. Please note down the username and password entered by you for your further logins. The system asks you to enter your contact information.

3. Please change your password as often as possible and keep it safe and secure and do not part with anyone.

4. In the main page various options are displayed. Here, select the New Entry option in Online e-SUGAM menus.

5. Next enter the e-SUGAM form details and save by pressing SAVE button. You can also click ‘SAVE & SUBMIT’ button directly here to skip the next step.

6. Now, select the Submit option in Online e-SUGAM menus. The list of the save transactions details are shown. Click on the select button against the transaction to be printed with e-SUGAM.

7. System shows the transaction details, verify and submit by clicking the Submit button.

8. Now system shows the e-SUGAM Serial No for the submitted transaction. Here click on Print button to print the e-SUGAM forms.

9. Now, e-SUGAM form can seen on the screen and take print out by clicking print option at file menu of the Internet Explorer option.

10. If a print is taken without mentioning the goods vehicle number and other related details of transport of goods, then please fill up the relevant transport related particulars, attest the same and obtain the signature of the driver/person in charge of the goods vehicle. Please take care to affix signature of consignor or agent or manager before dispatch of the goods.

11. The dealer can also upload the e-SUGAM forms in bunch in XML form. The XML file format and sample file is given below.

12. Dealer can also update or delete the transaction before submitting the form.

13. Dealer can take the copy of the e-SUGAM form or e-SUGAM Serial No. for verification in the checkpost.

14. In case of return of goods or movement of goods after submitting e-SUGAM form, then dealer can click the CANCEL button and enter the Serial Number of e-SUGAM or date of submission to select the required form. Now, enter the reason of the cancellation and click the CANCEL button. Again enter freshly that transaction for cancelled form, if required and generate new e-SUGAM for the transaction.

What is e sugam form?

INFORMATICS CENTRE PREPARED E-SUGAM FORM.

e‐Sugam is a facility provided to the dealers to upload the details of goods being transported onto the department's website while dispatching/receiving the goods and obtain an unique number as a proof of uploading such transportation details. The unique number thus obtained shall be produced before the check post/enforcement officer.

How to apply e-SUGAM Karnataka

steps:

1. Login to the Commercial Tax Department web-site http://vat.kar.nic.in or http://vatkar.gov.in or http://164.100.80.20/vat505 using the username and password.

2. In case of the first time login, the system will show some informative screens and ask user to enter his choice of username and password. Please note down the username and password entered by you for your further logins. The system asks you to enter your contact information.

3. Please change your password as often as possible and keep it safe and secure and do not part with anyone.

4. In the main page various options are displayed. Here, select the New Entry option in Online e-SUGAM menus.

5. Next enter the e-SUGAM form details and save by pressing SAVE button. You can also click ‘SAVE & SUBMIT’ button directly here to skip the next step.

6. Now, select the Submit option in Online e-SUGAM menus. The list of the save transactions details are shown. Click on the select button against the transaction to be printed with e-SUGAM.

7. System shows the transaction details, verify and submit by clicking the Submit button.

8. Now system shows the e-SUGAM Serial No for the submitted transaction. Here click on Print button to print the e-SUGAM forms.

9. Now, e-SUGAM form can seen on the screen and take print out by clicking print option at file menu of the Internet Explorer option.

10. If a print is taken without mentioning the goods vehicle number and other related details of transport of goods, then please fill up the relevant transport related particulars, attest the same and obtain the signature of the driver/person in charge of the goods vehicle. Please take care to affix signature of consignor or agent or manager before dispatch of the goods.

11. The dealer can also upload the e-SUGAM forms in bunch in XML form. The XML file format and sample file is given below.

12. Dealer can also update or delete the transaction before submitting the form.

13. Dealer can take the copy of the e-SUGAM form or e-SUGAM Serial No. for verification in the checkpost.

14. In case of return of goods or movement of goods after submitting e-SUGAM form, then dealer can click the CANCEL button and enter the Serial Number of e-SUGAM or date of submission to select the required form. Now, enter the reason of the cancellation and click the CANCEL button. Again enter freshly that transaction for cancelled form, if required and generate new e-SUGAM for

The ‘e-sugam’ online filing, introduced by the Commercial Taxes Department, Government of Karnataka, has not been getting a positive response from traders and industrialists who have finding it a ‘miserable’ experience going through with the process.

E-Sugam process, introduced by the department under the Karnataka Valude Added Tax (VAT) Act 2003, replacing Form 505 and certain limits of Form 515, is a mandatory formality of informing the department regarding movement of goods before it reaches check post. This has to be done on net, like “e-filing”, on the proforma put out on the Department’s website.

This came into effect from last February and will be strictly enforced from April.

Finding physical production and verification of the documents consume time and cause delays at the time of checking, e-sugam is introduced in the state, according to the Department’s notification. However, the Department seems to have overlooked the traders’ and industrialists’ angle. They feel the process is difficult and a nuisance. Consequently, it is affecting their business.

Narrating the difficulty they are experiencing after introduction of ‘e-sugam’, Hebbal Industrial Estate Manufacturers’ Association Secretary C M Subramanian said, “Job workers depending on customers from Hosur and Coimbatore were getting material during nights. They were sending the proceed material up to 2nd shift production. Now, the concerned clerk has to call the job workers in midnight and wait to get the sugam number. Till the number is given the dispatch has to wait.”

“In view of delay and nuisance, customers have begun diverting jobs to local vendors in Hosur. As a result, job workers here have lost around 60 per cent of business. Units in Bangalore, for example, had dedicated 90 per cent production to Hosur customers. All these job workers are facing serious problems after e-sugam came into effect.”

“E-sugam is making life miserable to most of the trade and commerce,” said industrialist J R Holla adding it may prompt the service industries to move out of the state instead of facing hassles in Karnataka.

Referring to Part C of the notification relating to information to be provided by the consignee on the goods received from out of the State, he said it is impossible for the consignee to get all the information in time and accurately from the consignor before the dispatch of goods. The consignor who stays in some other State may not take serious interest in providing all the information in time, accurately and completely. Under the notification, it is the consignee who will be held responsible for wrong or inaccurate information and is liable to be penalised.

On time limit for the e-sugam filing, Holla said e-sugam will have time vailidity depending on the distance of the consignment booked. However, it will not be in consignee’s control to tell how long the consignment will take to reach the check post. This may depend on many factors like road conditions, condition of the goods vehicle, the staff, distance to be covered, law and order situation, weather condition, accidents, etc .

The worried industrialists expressed hope that the government would act immediately and protect the interests of trade and commerce in Karnataka.